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Facts
The department filed a miscellaneous application to recall an appeal (ITA No. 381/Jodh/2018) for AY 2012-13, which was dismissed due to low tax effect based on CBDT Circular No. 17 of 2019. The department argued that the appeal fell under an exception clause related to a revenue audit objection concerning Section 54F, despite the tax effect being below the monetary limit.
Held
The Tribunal allowed the miscellaneous application, recalling the original appeal. However, considering the latest CBDT Circular No. 5/2024, which removed the exception clause, the department conceded that the issue is now covered under low tax effect. Consequently, the original appeal was dismissed as infructuous.
Key Issues
Whether an appeal previously dismissed for low tax effect should be recalled when it initially fell under an exception clause, and how subsequent CBDT circulars on monetary limits and exceptions impact the appeal's maintainability.
Sections Cited
Section 54F
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Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR
Before: DR. MITHA LAL MEENA, HON’BLE & SHRI SUDHIR PAREEK, HON’BLE
ORDER DR. MITHA LAL MEENA, A.M.: The captioned miscellaneous application is instituted at the instant of the department against the Tribunal order in 11- 09-2019 in respect with Assessment years 2012-13 for recalling the said appeal which was dismissed on account of Low Tax effect.
The Ld. Addl. CIT (DR) for the department submitted that at the time of adjudication of the revenue appeal in Assessment years 2012-13 the appeal of the Department was dismissed on Tax effect by the Hon’ble Tribunal in view of the enhanced monetary limits by the CBDT Circular No. 17 of 2019 dated 08.08.2019 as the revised monitory limit 2 M.A. No. 05/Jodh/2019 (A/o & (Assessment Year 2012-13) mentioned in the CBDT's circular No. 17/2019 dated 08.08.2019 are applicable to all pending appeals. Since in the above appeal, the tax effect involved was Rs. 86,030/- and accordingly it has been dismissed by the Hon'ble ITAT for Low Tax Effect.
He emphasized that in the above case although the tax effect was below the monetary limit as given in CBDT's circular even then the appeal before the Hon'ble ITAT was filed as the issue under consideration arose after acceptance of a revenue audit objection by the department which was kept in exception clause being pertaining to deduction claimed u/s 54F of the Act. The Revenue Audit Objection has been accepted by the Department and hence it wa not covered in Tax limits of filing appeal before the Tribunal. However, he agreed that in view of the latest CBDT Circular No.5/ 2024 dated 15 March 2024 presently, the matter is covered under low tax effect as the said exception clause has been done away.
None attended for the assessee.
Having heard the Ld. Addl. CIT (DR) and perusal of record we find that the issue was not covered in Tax effect by CBDT Circular No. 17 of 2019 dated 08.08.2019 while the appeal was adjudicated earlier by the Tribunal and accordingly the MA of the revenue is allowed.
3 M.A. No. 05/Jodh/2019 (A/o (Assessment Year 2012-13) 6. However, in view of latest CBDT Circular No.5/ 2024 dated 15 March 2024 as the Ld. DR rightly admitted that presently the issue is covered under Low Tax Effect. Therefore, he did not press the issue raised by the department in the quantum appeal for adjudication.